MAAX announces its Q1-06 Results
14 July 2005 - 12:43AM
PR Newswire (US)
MAAX announces its Q1-06 Results MONTREAL, QC, July 13 /PRNewswire/
-- MAAX Corporation today announced earnings for the first quarter
ended May 31, 2005. Net sales for the first quarter of fiscal 2006
increased 3.4% to $140.8 million from net sales of $136.1 million
for the first quarter of fiscal year 2005. Operating income for the
fiscal 2006 first quarter decreased by $3.6 million or 31.5% from
$11.4 million to $7.8 million. Our net sales increased in all three
sectors of activity. Net sales in the Bathroom Sector increased
3.0% from $111.5 million to $114.9 million. Net sales in the
Kitchen and Spas Sectors increased 5.1% and 5.0% to $10.5 million
and $15.4 million respectively. The market environment remains
favorable but we experienced a slower growth in certain sectors of
activity and in some regional markets. Lower consolidated operating
income in the first quarter of fiscal 2006 was driven primarily by
the year over year increase in the cost of raw material, which more
than offset the improvement in direct labor and manufacturing
expenses. Operating expenses were also affected by restructuring
and non-recurring charges of $0.6 million compared to $1.8 million
for the same period last year. Financial position Free cash flow
(cash flow related to operating activities minus capital spending
net of asset disposal) for the first quarter of fiscal year 2006
amounted to $4.3 million, for an improvement of $12.7 million when
compared with a net use of cash of $8.4 million for the same period
last year. This results mainly from a reduction of investment in
working capital year over year from the implementation of lean
initiatives. Total net debt (long term debt less cash and cash
equivalent) of $350.1 million at May 31, 2005 decreased from
February 28, 2005 levels of $355.1 million. Unusual Items and
Measures Not Consistent with GAAP To facilitate understanding of
first-quarter results, several tables are attached to this news
release as supplemental disclosure. The operating results of MAAX
account for unusual items affecting the comparability of its
results. To measure its performance and that of its business
sectors from one period to the next, without the variations caused
by special or unusual items, management uses certain measures not
consistent with U.S. GAAP, such as operating income and free cash
flow. These measures have no standardized meaning as prescribed by
U.S. GAAP and may not be comparable to similar measures presented
by other companies. Accordingly, they should not be considered in
isolation. Conference Call A conference call will be held
exclusively for MAAX's note holders and term lenders at 10:00 a.m.
Eastern time on Thursday July 14, 2005 to review and discuss the
results for the first quarter of fiscal year 2006. About MAAX MAAX
is a leading North American manufacturer of award-winning bathroom
products, kitchen cabinets and spas for the residential housing
market. The Corporation is committed to offering its customers an
enjoyable experience: distinctive, stylish and innovative products
and the best customer service practices in the industry. MAAX
offerings are available through plumbing wholesalers, bath, kitchen
and spa specialty boutiques and home improvement centers. The
Corporation currently employs more than 3,700 people in 26 plants
and distribution centers throughout North America and Europe. MAAX
Corporation is a subsidiary of Beauceland Corporation. Visit us at
http://www.maax.com/ . Forward Looking Statements This press
release may contain implicit or explicit forecasts and
forward-looking statements within the meaning of the Federal
securities laws about MAAX's objectives, strategies, financial
position, operating results and business. These statements are
forward-looking in that they are based on management's expectations
for the markets in which the Corporation does business as well as
on various estimates and assumptions. These expectations seemed
reasonable at of the date of this press release on July 13, 2005.
However, actual results could differ materially from these
expectations if known or unknown risks affect results or if
management's estimates or assumptions prove inaccurate.
Accordingly, management cannot guarantee the realization of the
forward-looking statements. > DATASOURCE: MAAX INC. CONTACT:
Andre Heroux, President and Chief Executive Officer, (514)
844-4155, ext. 222; Denis Aubin, Executive Vice-President and Chief
Financial Officer, (514) 844-4155, ext. 231; Source: MAAX
Corporation
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